Although things certainly have changed for people that use credit cards, there are still some opportunities for those who have paid their bills regularly and kept their credit score relatively high. Of course, the days of finding multiple credit card offers in your mailbox have long since passed, but it is still possible for you to use credit cards to your advantage in many different ways.
Having one is not only going to assist you in taking care of an emergency, it can also work in your favor because of the different rewards that may be attached to the card. In addition, many people are still enjoying the possibility of transferring balances to a new credit card, which in many cases results in a 0% interest for six months or longer. Is it still wise to do so?
If you still have good credit, you are certainly someone that has favor with the credit card companies, and they will want to use you in order to further their interests. That is why you see so many 0% APR promotional offers or transferred balances, as well as for new purchases on the card. One of the common questions that has to do with these balance transfers is if it is going to assist you to boost your credit score. This is a good question to ask, because having a high credit score is so important to your overall financial goals.
What might surprise you is that the decision to make the balance transfer can be either good or bad, depending upon the financial situation that you find yourself in. For example, you not only need to consider the overall debt to have, you need to consider the percentage of debt that is on any outstanding balances that you may have. To break it down simply, it is preferable for you to have under 50% of your overall balance in use at any given time. That would mean if you have an available credit of $20,000, you would not want to have any more than $10,000 on the card, or that can affect your credit score negatively. It may be to your advantage to have it on two different cards, and to keep the overall balance under 50%, than to push it up higher, affecting your credit score in the process.
You also need to think about the number of times that your credit is being pulled. If you regularly look for credit in the form of credit cards or loans, it can affect your credit score negatively. Of course, just doing one credit score inquiry is not going to affect you, and if it does, it will be for the very short term.
You can use this to your advantage, applying for a credit card online where you will be given the opportunity to choose from among many different credit card companies, and to compare those companies side-by-side before making your decision. You can then take advantage of the 0% transfer, being sure to do it wisely, and your credit score will increase as a result.